§ Mr. HawkinsTo ask the Secretary of State for Foreign and Commonwealth Affairs how British aid can be used to help stimulate enterprise and trade in the developing countries.
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§ Mr. Lennox-BoydBritish aid is used to promote policies and an institutional and infrastructural environment in aid recipients conducive to the development of enterprise and trade. This may be done through assistance in support of economic reforms and through projects to promote the rehabilitation, development and effective management of transport and communications infrastructure and of public utilities. We also provide aid to prepare for and facilitate the privatisation of public enterprises and to develop the financial sector and financial markets.
British aid also helps enterprises in aid recipients more directly through know-how and technology transfer to help overcome their production and commercial problems and thus to become more competitive in external markets. The aid programme pays particular attention through research and technical assistance to solving production problems arising in the renewable natural resource sectors. It also has a growing number of projects to encourage the development of small enterprises.
The aid programme supports the Commonwealth Development Corporation, which provides equity investment and loan finance predominantly to private sector enterprises in developing countries. Many of its projects produce commodities for export.